Online casino operator Betfair’s CEO Breon Corcoran has reaffirmed his plans to provide simpler products for customers.
Corcoran was commenting on the release of full year pre-tax losses of almost £50m in financial year ending April 2013. The figures show a total U-turn on the previous year’s success, when the company experienced impressive profits of just over £54m.
Corcoran, attributed the poor results to the company’s “year of transition,” during which it withdrew from insufficiently-regulated markets including Cyprus, Greece and Germany, and instead concentrated on putting its efforts into more strictly-regulated markets. This decision cost the gambling giant over £19m in restructuring costs plus, it also took a further hit thanks to a £82m impairment charge as a result of an unfortunate venture into foreign exchange markets.
There is some good news for shareholders though, as Betfair’s TVG American horseracing division reported profits of 6%, plus Betfair is also making significant cost savings following a number of employee redundancies in February 2013. The operator is also likely to benefit from the opening up of Spanish and Italian regulated markets to betting exchanges, and has also recently launched its own fixed-odds sports-book (following the company’s acquisition of Blue Square earlier this year) which seems to be faring well.